Critical Comparison: Memorial Production Partners (MEMP) & Bill Barrett Corporation (BBG)
Memorial Production Partners (NASDAQ: MEMP) and Bill Barrett Corporation (NYSE:BBG) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
This table compares Memorial Production Partners and Bill Barrett Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Memorial Production Partners||-395.31%||-496.55%||-58.07%|
|Bill Barrett Corporation||-52.54%||-7.65%||-3.07%|
This is a breakdown of current ratings and price targets for Memorial Production Partners and Bill Barrett Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Memorial Production Partners||3||1||0||0||1.25|
|Bill Barrett Corporation||1||7||6||0||2.36|
Memorial Production Partners presently has a consensus target price of $1.00, indicating a potential upside of 700.00%. Bill Barrett Corporation has a consensus target price of $7.04, indicating a potential upside of 72.09%. Given Memorial Production Partners’ higher probable upside, research analysts plainly believe Memorial Production Partners is more favorable than Bill Barrett Corporation.
Memorial Production Partners pays an annual dividend of $0.06 per share and has a dividend yield of 48.0%. Bill Barrett Corporation does not pay a dividend. Memorial Production Partners pays out -3.4% of its earnings in the form of a dividend.
Volatility & Risk
Memorial Production Partners has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Bill Barrett Corporation has a beta of 3.52, indicating that its stock price is 252% more volatile than the S&P 500.
Insider and Institutional Ownership
5.5% of Memorial Production Partners shares are owned by institutional investors. Comparatively, 90.8% of Bill Barrett Corporation shares are owned by institutional investors. 1.5% of Memorial Production Partners shares are owned by insiders. Comparatively, 2.7% of Bill Barrett Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Memorial Production Partners and Bill Barrett Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Memorial Production Partners||N/A||N/A||N/A||($1.75)||-0.07|
|Bill Barrett Corporation||$192.51 million||1.59||$138.41 million||($1.66)||-2.46|
Bill Barrett Corporation has higher revenue and earnings than Memorial Production Partners. Bill Barrett Corporation is trading at a lower price-to-earnings ratio than Memorial Production Partners, indicating that it is currently the more affordable of the two stocks.
Bill Barrett Corporation beats Memorial Production Partners on 10 of the 13 factors compared between the two stocks.
About Memorial Production Partners
Memorial Production Partners LP (the Partnership) owns, acquires and exploits oil and natural gas properties in North America. The Partnership is owned by its limited partners and general partner. Its general partner is responsible for managing all of the Partnership’s operations and activities. The Partnership operates in the acquisition, exploitation, development and production of oil and natural gas properties segment. Its business activities are conducted through Memorial Production Operating LLC (OLLC) and its wholly owned subsidiaries. Its assets consist primarily of producing oil and natural gas properties, and are located in East Texas/Louisiana, Rockies, Offshore Southern California, Permian Basin and South Texas. Most of its oil and natural gas properties are located in oil and natural gas reservoirs with geologic characteristics and production profiles and capital requirements.
About Bill Barrett Corporation
Bill Barrett Corporation is an independent energy company that develops, acquires and explores for oil and natural gas resources. The Company’s assets and operations are located in the Rocky Mountain region of the United States. It has over two areas of production: The Denver-Julesburg Basin (DJ Basin) and the Uinta Oil Program in the Uinta Basin. Its acreage positions in the DJ Basin are located in Colorado’s eastern plains and parts of southeastern Wyoming. It had interests in 299 gross producing wells and served as an operator in 202 gross wells, as of December 31, 2016. The Uinta Basin is located in northeastern Utah. Uinta Basin’s estimated proved reserves are 21.4 million barrels of oil equivalent (MMBoe). Uinta Basin has interests in approximately 240 gross producing wells. The Company serves as an operator in over 170 gross wells. The Uinta Oil Program includes over three areas of development located in the basin referred as Blacktail Ridge, Lake Canyon and East Bluebell.
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